Shares of Blue Nile Inc. (NILE) fell 19% to $43.61 after the online jewelry retailer forecast first-quarter results that missed analysts' expectations. The Seattle company said it expects first-quarter earnings between 11 cents and 14 cents a share and sales to be "relatively flat" with first-quarter results. Analysts expect, on average, earnings of 23 cents a share on revenue of $82 million.
The company also said its fourth-quarter net income rose 31% to $7.5 million, or 45 cents a share, from $5.8 million, or 35 cents a share, a year earlier. Revenue increased 23% to $111.9 million. Analysts expected, on average, earnings of 44 cents a share on revenue of $113 million.
In addition, the board authorized an additional $100 million to repurchase shares of its common stock over the next two years. The company also named President Diane Irvine to the additional role of chief executive. She succeeds Mark Vadon, who was named executive chairman.
I could swear Blue Nile's CEO was just on CNBC two weeks ago saying how great business was......anyway....this is a retailer, right...retailers are supposed to have flat to lower earnings in the quarter following the Xmas Quarter...what are these analysts thinking??? This is probably an overreaction and a buying opportunity.
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